Following the decision of the High Court last month on PPI mis-selling by the banks, Lloyds led the pack by announcing that it would not contest and which was subsequently endorsed by the British Bankers Association (BBA).
Most banks have set aside vast sums of money that will be dispersed as compensation to its customers who has their payment protection insurance mis-sold. Lloyds Banking Group set aside £3.2 Billion, Barclays was £1 Billion, RBS £850 Million and HSBC set aside £269 Million.
Barclays have gone on record and confirmed that all the customers would be settled on a "no-quibble" basis. Customers will also be reimbursed the total value of premiums paid and an additional 8% interest. While other banks have confirmed that they would pay compensation, it is Barclays who have stated explicitly their ìno-quibbleî policy. This means that any customer of Barclays who have been mis-sold payment protection insurance and lodged a complaint on or before 20th April of this year will be automatically paid back the premiums they have paid.
The Financial Ombudsman Service (FOS) that it had received more than 40,000 PPI complaints from people whose original complaint to the bank was overturned. This shows the enormous scale of the problem. It is not surprising that all three banks Lloyds, RBS and Barclays have requested the Financial Services Authority (FSA) to extend the deadline to pay the compensation as the 8 weeks provided by the courts was insufficient. The FSA has decided that as a temporary measure, for complaints put on hold during the judicial review to be settled by the end of August 2011. The FSA have also said that PPI complaints received after the end of August but before the end of 2011 can be dealt with in 12 weeks but after that the normal 8 week timetable will apply.
Stuart Boseley, Best Insurance commented on Barclays bankís latest statements and said that it is only proper for other banks who have been mis-selling such as Lloyds, RBS and HSBC to follow the approach of Barclays and lay down a no quibble policy for complaint handling. He added that Best Insurance follows some of the best practise in the industry and in every occasion ensures that the customer is advised on a product that suits their individual requirement. Best Insurance has a wide range of payment protection insurance and income protection insurance policies and is well recognised for its customer service.
Best Insurance is one of the UK's largest protection insurance retailers and products can also be bought online from www.bestinsurance.co.uk
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